Back in 2015, a bill called the “Medicare Access and CHIP Reauthorization Act” was passed. This bill indicated that, as of January 1, 2020, no one coming onto Medicare will be able to enroll in Medicare Supplement Plans C or F. These had been the most popular plans for many years. It is estimated that “Two out of 3 Medigap enrollees had either Medigap Plan F or Medicare Supplement Insurance Plan C” (MedicareSupplement.com).
It is important to first note that those who currently have those supplement plans will NOT lose their coverage.
However, if you are currently enrolled in Medicare Supplement Plan F or Plan C, you do not want to stay on that plan if you qualify to switch to another plan. In order to switch Medicare Supplement (Medigap) plans, you may be subjected to a health questionnaire.
The new #1 Medicare Supplement is Plan G. Plan G coverage is actually almost identical to Plan F, except it has one small deductible. Plan G covers EVERY out of pocket that Original Medicare does not cover, except for 20% of foreign emergency travel as well as the $183 annual deductible for doctors’ coverage. The $183 deductible is known as the Part B deductible.
More often than not, those who currently have Plan F or Plan C can switch to the Plan G and save enough money to pay for the $183 deductible that Plan G does not cover, and still have extra money left over to put into their pockets. This means that if you currently have Plan F or Plan C, it is in your best financial interest to switch onto the Plan G if you qualify. Unless you have serious preexisting illnesses or have had recent major surgeries, you probably qualify to make the switch. Medicare Supplement Plan G currently offers the most benefits for the lowest price.
As Plan F and Plan C continue to be phased out, the annual rate increases that their customers have to pay are upwards of 15% or more every year. Because these plans are being discontinued, it is expected for the annual rate increases to continue going up. Comparatively, the Plan G is only experiencing about a 5% yearly rate increase in monthly premiums.